9 and 14 Carat Gold Jewellery is the New NORMAL – what buyers don’t know?

12^th October, 2025

 

9 and 14 Carat Gold Jewellery is the New NORMAL – what buyers don’t know?

 

Dear Fellow Travellers,

 

Wish you all a happy Diwali. It is considered auspicious to buy Gold during Diwali days and most Indians buy the gold as per their budget/need. With the gold prices nearing to Rs.1.30 lakhs per 10 grams – it is becoming out of the budget for a normal middle class to buy gold jewellery. When the need arises – the inventions also take place.

 

Normally 22 Carat gold jewellery is the standard in India. But with the gold prices moving up – 18 carat / 14 carat and 9 carat hallmarked gold jewellery is the new normal.   

 

The expected effect is - with the Gold purity going down – prices also goes down and more and more people can afford to buy Gold Jewellery. Today, I am sharing the costing of the Gold Jewellery as per the CARAT to bring home the reality. 

 

Gold prices as per the CARAT: - 

          

Let us say today’s 24 carat gold prices are Rs.1.30 lakhs per 10 grams. As per the above – we can get the following break up. 

 

1.  24 carat - 1.30 lakhs per 10 grams. (100%)

2.  22 carat - 1.19 lakhs per 10 grams. ( 91.6%)

3.  18 carat -  97500 per 10 grams. (75%)

4.  14 carat -  75800 per 10 grams. (58.3%)

5.    9 carat -  48750 per 10 grams. ( 37.5%) 

 

The above is the gold prices as per the carats. When you buy the Gold Jewellery – you have to pay the making charges plus Gst.

 

In ideal case as per the above calculations - those who buy 9 carat jewellery instead of 22 carat jewellery can buy 2.4 times more gold jewellery. E.g. 22 carat gold will cost Rs.1.19 lakhs per 10 grams. In Rs.1.19 lakhs you can buy 24.40 grams of gold jewellery of 9 Carat as per the above prices. 

 

It means – a gold jewellery buyer can buy more Gold at the lesser prices. Since it is HALLMARKED – buyer is assured of selling prices in future – in case of some emergency. 

 

What happens in the practice when you buy the Gold Jewellery? 

 

There are two aspects. Gold prices as per the carat and the making charges. Let us see the above two aspects in detail. 

 

Gold prices: - In practice – normal jewellers will charge 3-4% more prices for the jewellery plus making charges plus GST. 

 

1.  22 carat - Approx 1.23 lakhs per 10 grams. ( 95-96%)

2.  18 carat - Approx 1 lakh per 10 grams. (78-80%)

3.  14 carat - Approx 80000 per 10 grams. (60-62%)

4.    9 carat – Approx 52000 per 10 grams. ( 40 -42%) 

 

So, a buyer is paying a premium while he is buying Gold Jewellery. I have no problem with the above rates, as every jewellery has the right to sell his products as per his own costing and his own profit targets. 

 

Making Charges: - 

 

This is the real game changer with the 9 and 14 carat gold jewellery sellers. With the gold prices moving up, tons of new jewellery stores are opened across India. How can they afford such lavish stores? What’s more, they provide good hospitality to the customers who come to their stores. Some jewellers have kept the MENU card and you can order FREE OF COST anything as long as you are in the store – whether you buy or not. 

 

Let us assume for the example sake you are paying 15% making charges on all the ornaments – irrespective of the carat.

 

How will the costing be done? 

 

The making charges are on the GOLD Prices of the day. As per above example Gold prices are Rs.1.30 per 10 grams. So, making charges are Rs.19500 per 10 grams. 

 

So, in practice this will be the cost. 

 

1.  22 carat - Approx 1.23 lakhs per 10 grams + 19500 per 10 grams making charges. 

2.  18 carat - Approx 1 lakh per 10 grams + 19500 per 10 grams making charges. 

3.  14 carat - Approx 80000 per 10 grams + 19500 per 10 grams making charges. 

4.    9 carat – Approx 52000 per 10 grams + 19500 per 10 grams making charges.  

 

Say you have Rs.1.50 lakhs to spend on Gold Jewellery. 

 

1.  You can buy 10 grams of 22 carat gold jewellery with 19500/- making charges and gst. 

2.  You can buy 12.5 grams of 18 carat gold jewellery with Rs.24000 making charges and gst. 

3.  You can buy 16 grams of 14 carat gold jewellery with Rs.31200 making charges and gst.

4.  You can buy 24 grams of 9 carat gold jewellery with Rs.46800 making charges and gst. 

 

What should be the actual making charges as per the 15% per gram? 

 

1.  22 carat - 1.19 lakhs per 10 grams + 15% (Rs.17850)

2.  18 carat -  97500 per 10 grams + 15% ( Rs.14635)

3.  14 carat -  75800 per 10 grams + 15% ( Rs.11370)

4.    9 carat -  48750 per 10 grams + 15% ( Rs.7300)

 

Now, compare the above making charges with the ACTUAL which customers are charged. 

 

You will understand the secret of 50% off on making charges.

 

What does this mean for JEWELLERY COMPANIES? 

 

Two effects on them.

 

1.  Their margins will sky rocket with the same amount of investments. For Rs.1.50 lakhs they are making Rs.46800 as making charges in 9 carat compared to Rs. 19600 if they sell 22 carat jewellery. 

2.  Their sales will also improve in volume terms as the customers can buy 24 grams of gold jewellery with the same amount of money. 

 

This is a WIN-WIN for both sides. 

 

What does it mean for CUSTOMERS?

 

How much gold are you buying in reality? 

 

1.  24 carat - 100%  (bars or coins)

2.  22 carat - 91.6% ( 8% other metals)

3.  18 carat - 75% ( 25% other metals)

4.  14 carat - 58.3% (41.7% other metals) 

5.    9 carat - 37.5% ( 62.5% other metals) 

 

It means……

 

When you are buying 22 carat gold jewellery you are paying Gold making charges on 8% of the non-gold metals. 

 

When you are buying 18 carat gold jewellery you are paying Gold making charges on 25% of the non-gold metals.

 

When you are buying 14 carat gold jewellery you are paying Gold making charges on 41.7% of the non-gold metals.

 

When you are buying 9 carat gold jewellery you are paying Gold making charges on 62.5% of the non-gold metals.

 

What is my personal suggestion?

 

Majority of the working class in India have monthly  earnings of Rs.10000 per month to Rs.2 lakhs per month. 

 

When they get 50% off on making charges and lesser prices of Gold ( 9 carat gold in the above case) – they are attracted to buy them. 

 

Buffett taught me value investing 35 years back. If I follow his principles in GOLD JEWELLERY – I will buy 22 carat gold jewellery however little I can afford in my limited budget. I will negotiate my making charges on Gold Value and not on the GOLD RATE of the day. If I can save 50% off on making charges as per Gold Value – I will be more happy (no jeweller will agree to this, I know).

 

It's your money and your life. Take your call. 

 

Follow me on Twitter @hiteshmparikh Or on WhatsApp - +91-9869425399.

 

Learn a Lesson. Live with Passion & Invest with Reason.

 

Hitesh Parikh

Astro-Scientist.